MTN Nigeria Communications Plc has informed the Nigerian Exchange and the investing public of the successful completion of its Series 4 and 5 commercial paper issuances under its N150 commercial paper issuance program (CP issuance).
MTN Nigeria sought to raise N100 billion, and the transaction was 125% subscribed, raising N125 billion in total.
Commercial paper is a promissory note that bears interest and is exchanged for capital. It is a credit instrument or a channel through which loans can be obtained from the securities market without having to approach a bank.
A commercial paper is issued by a corporate entity in need of funds for short-term financial obligations such as working capital and debt refinancing, among other things.
MTN Nigeria intended to borrow N100 billion through commercial paper, but it was oversubscribed, indicating that there was more demand for it among investors than anticipated.
As a result of the commercial paper issuance, MTN Nigeria raised N125 billion, allowing the company to use the funds for short-term working capital and funding needs.
“MTN Nigeria Communications PLC (MTN Nigeria) hereby notifies Nigerian Exchange Limited and the investing public of the successful completion of its Series 4 & 5 Commercial Paper issuance under its Nl50 billion Commercial Paper Issuance Programme (the CP Issuance).
“MTN Nigeria sought to raise N100 billion, and the transaction was 125% subscribed, with a total of A125 billion raised.
“MTN Nigeria issued 188-day commercial papers at a yield of 11.00% and 267-day commercial papers at a yield of 12.50%. The CP Issuance was completed on 1 March 2023.
“The CP Issuance is part of MTN Nigeria‘s strategy to diversify its funding options. The proceeds will be utilized for its short-term working capital and funding requirements,” the document reads.
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